AI News Tracker: Meta runs into anti-privacy controversy, while Google says AI can help Indian MSMEs

Meta runs into anti-privacy backlash with its new Muse Image AI image generator, and a new Google report says that AI adoption can provide a big economic boost to Indian MSMEs

Team Lounge
Published12 Jul 2026, 09:00 AM IST
Meta's new Muse Image AI Image generator has run into controversy.
Meta's new Muse Image AI Image generator has run into controversy.(Reuters)

Meta runs into controversy

Meta’s new Muse Image, an AI image generator, was launched earlier last week, and one the face of it Muse seems to be a pretty standard—if cookie cutter—AI application. Give it text prompts and it will create images, artwork, and even do basic editing on photos. However, one particular application of Muse Image has sparked a backlash around privacy concerns. Which is that Muse Image can be used to transform photos from other people’s public Instagram accounts. At one level, this is yet another example of Meta’s greedy approach to its users’ privacy. At another level, this is another win for the sheer inanity that passes for content creation in the age of AI. You can deny Meta permission to use your images by making the necessary changes in your privacy settings.

Also Read | How content creators are building a new workflow with the help of AI tools

Can AI add value to MSMEs?

According to a new report from Google, AI adoption by Indian MSMEs can lead to the latter unlocking over $490 billion in economic value. Prepared in conjunction with the India SME Forum, the report is called The Google Dividend: Measuring Digital Commerce’s Contribution to India’s Economic Future. For the study, 3,249 MSMEs were surveyed, and 58% of firms reported that the use of AI improved their customer acquisition, while 66% said that it improved their market access. The bottom line of the report is that AI adoption could improve business profitability by up to 35%.

Also Read | AI and children: How parents are navigating the use of chatbots as learning aids

How a labour union sees AI

As firms deliver on their promise to shift more jobs to AI agents, thus rendering human workers irrelevant to their scheme of thigs, unions are fighting back. In fact, the demands of an Australian dockworkers union is a case study of how workers would want to be compensated as AI and automation use expands. Port logistics company DP World, based in Dubai, has been reportedly expanding the use of AI to manage employees and work schedules, as well as AI-assisted remote control cranes and driverless vehicles. In light of this, the dock workers are demanding a 28-hour work week, and no loss of pay. If DP World wants AI and automation, they must pay the social dividend,” said a statement released by the union.

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